Company issuing more shares, Good or Bad?

I am invested in an small cap oil stock that has been doing ok, not a barn burner but I would like to keep it as the fundamentals are positive. Today they announced the they were issuing another 3.7 million shares on top of the 25 million already out there. Is this a good sign or bad sign? Will it dilute the price of the 25 million shares out there or be a sign of additional capitol for the company to work with?